Chinese Tesla competitor Xpeng raises $400m from Xiaomi and other investors
Xpeng Motors eyes boosting the production of electric vehicles and gain its part on the market
Chinese electric car manufacturer Xpeng Motors has raised $400m from electronics company Xiaomi and other investors during its Series C funding round.
According to a press release published by Xpeng, the funds were raised both from corporate and individual investors, as well as private equity firms. Other investors apart from Xiaomi were not revealed.
Lei Jun, CEO of Xiaomi Corporation, said that Xpeng and Xiaomi will partner on connecting smart phones and smart cars and work with intelligent hardware designed for the vehicles.
Guangzhou-based manufacturer Xpeng was founded in 2014. By the end of 2018, when the company closed a $350m funding round with the participation of Alibaba, Foxconn and IDG Capital, it had over 3,000 employees.
Xpeng's first model, G3 SUV, was presented in 2018. This year the company has shown its second model, the P7 sedan. In July, it revealed the new version of G3 with a 520km (323-mile) driving range.
Tesla, the US electric car manufacturer, gained approval to manufacture in China in October. Elon Musk’s company will build a $2bn factory in the eastern Chinese city of Shanghai, its first manufacturing site overseas. This plan will be China’s first fully foreign-owned car plant.
FURTHER READING: Tesla gains approval to manufacture in China